Quote:
Originally Posted by CliffFletcher
For context, it’s worth keeping mind that the average Canadian has $184,000 saved at retirement, and those numbers are skewed by the high end. 30 per cent of middle-aged Canadians have no savings and 20 per cent have less than $50k saved.
The median after-tax income in Canada for households headed by an individual over 65 years old is $61k. Single individuals over age 65 have a median after-tax income of $27,500.
If you plan to have $750k saved at retirement, you’ll be doing very well compared to most other retirees.
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I just ran the FireCalc site based on $200k at retirement, $40k/yr spending, 30yr time period, immediate retirement, 2 persons each getting $15k/yr, and on the 4th tab a 90% level downside versus prior year spending... and the overall result is 100% chance of not running out of money.
So the point here is that yes $200k is a lot of money, however if you start early and contribute regularly and don't be excessively risk averse, AND have CPP/OAS then you can manage ok. Lots of FIRE'd couples out there living on less than $40k/yr who do a ton of global travel hacking and live in low cost of living areas that do just fine.